Signs that enterprise adoption of AI is influencing, says JMP Securities By Investing.com

According to a recent note from JMP Securities, Google’s adoption of enterprise AI is gaining momentum, as evidenced by the growing use of its Gemini platform.

“We’re seeing signs that enterprise adoption of AI is being driven,” the firm said.

They explained that at the “Gemini at Work” event, Google showed a 35x increase in Gemini usage, with 75% of daily users reporting that AI improves the quality of their work. JMP Securities believes this signals the inflection point in enterprise AI adoption.

The firm says Google has been actively removing barriers to AI adoption by ensuring compliance with SOC 1, 2, 3 and HIPAA standards and building integration partnerships with major players such as Salesforce, SAP, Microsoft and Oracle.

These moves have led to 85 new enterprise use cases in the past six months, which analysts say are driving tangible cost savings and revenue opportunities for companies.

Analysts also point out that AI is becoming an essential tool for corporations as they prioritize technological transformation. As Google integrates its AI solutions with raw and third-party data through these partnerships, accuracy and functionality improve.

For example, the firm says that enterprises have increased their generative use of AI by 15x, while the adoption of AI agents has increased by 6x.

Analysts add that Google shared 185 real-world examples of how companies are integrating AI, with notable use cases including Snap’s multi-modal deployment of AI for visual search and Best Buy using AI to save valuable time for call agents center.

Although many of these projects are still in the early stages, analysts believe that the growing need for computing power points to a growing demand for cloud services, especially Google Cloud.

JMP Securities maintained its market outperform rating on Alphabet (NASDAQ: ) with a $200 price target, citing Google’s leadership in AI and its vast total addressable market.